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PRESIDENTIAL DECREE NO. 1375
PRESIDENTIAL DECREE NO. 1375 -
TRANSFERRING TO THE BUDGET COMMISSION THE FUNCTIONS OF LOCAL GOVERNMENT
BUDGET ADMINISTRATION
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WHEREAS, it
is the policy of government to undertake national development within
its total context;chanroblesvirtualawlibrary
WHEREAS, local governments are vital components of the government's
machinery for national development; chanroblesvirtualawlibrary
WHEREAS, local government's resources constitute a significant portion
of the total development resources of government; and
WHEREAS, the Budget Commission is entrusted with the responsibility of
assisting the President in the preparation of the total national
resources and expenditures budget, which includes, among others, those
for local governments:cralaw:red
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. The Budget Commission shall be responsible
for the review and evaluation and for taking appropriate action on the
annual principal and supplemental budgets and other financial
statements covering all funds of local governments; and the review and
formulation of recommendations on resolutions of local legislative
bodies involving appropriation of local funds. These functions and
generally those pertaining to expenditures of local governments,
governed by P.D. No. 477 and presently performed by the Department of
Finance, are hereby transferred to the Budget Commission. All pertinent
records, appropriations and such qualified personnel as may be
necessary, from the Office of Local Government Finance or other units
of the Department of Finance, involved in or connected with the
aforesaid functions, are likewise hereby transferred to the Budget
Commission. chanroblesvirtualawlibrary
Section 2. In connection with the above, the Budget
Commission shall perform the following functions;chanroblesvirtualawlibrary
a. Analyze and review annual principal and
supplemental budgets of provinces and cities to determine compliance
with statutory and other mandatory requirements;chanroblesvirtualawlibrary
b. Examine and process applications of local
governments for cash advances and budgetaryds with respect to their
budgetary implications, and prepare appropriate recommendations thereon;chanroblesvirtualawlibrary
c. Examine and analyze provincial and city trial
balances, books of accounts, and other financial reports, as may be
necessary in the fulfillment of the Budget function;chanroblesvirtualawlibrary
d. Compile and tabulate statistical data, prepare
and analyze consolidated financial statements of local governments, and
review projections and forecasts of local government income and
expenditures;chanroblesvirtualawlibrary
e. Provide technical assistance to local government
in the preparation, authorization, execution and accountability phases
of the budget process;chanroblesvirtualawlibrary
f. Formulate and promulgate rules and regulations
for the effective performance of all the foregoing functions; and
g. Perform other related functions as may be
assigned by competent authority. chanroblesvirtualawlibrary
The Secretary of Finance shall continue to exercise the functions
assigned to him under P.D. No. 477 pertaining to local government
income, borrowings, other receipts, and local treasury operations.
Section 3. Local government units shall constitute
and include in their administrative organization, an
office/section/unit responsible for budget functions. It shall provide
technical and staff services to the Chief Executive and other local
officials on budget matters. In addition, the budget officers of
provinces shall review the budgets of municipalities and the budget
officer of cities and municipalities shall review the budgets of
barangays, within their respective jurisdiction, observing the
requirements and limitations prescribed for provincial and city
governments under P.D. No. 477 and this Decree.
Section 4. Budget officers of provinces, cities and
municipalities shall be appointed by the local government head
concerned from persons meeting the minimum qualification requirements
for provincial, city and municipal treasurers as the case may be,
subject to civil service law and subject to the approval of the
Commissioner of the Budget.
Section 5. Revenue funds shall not be paid out of
any local treasury except in pursuance of specific statutory authority
or of appropriations duly approved pursuant to P.D. No. 477 and this
Decree.
Section 6. The Budget Commission shall undertake the
functions assigned by this Decree through its Regional Offices, with
technical assistance from its Local Governments and Government
Corporations Budget Office. For this purpose, the Budget Commission is
hereby authorized to establish such additional Regional Offices as may
be necessary to properly discharge local government budget functions.
Section 7. There is hereby authorized to be
appropriated the amount of five million pesos for the Budget Commission
to carry out the functions prescribed under this Decree.
Section 8. All provisions of laws, decrees, and
orders inconsistent with this Decree are hereby amended or modified
accordingly.
Section 9. This Decree shall take effect upon its
approval.
Done in the City of Manila,
this 16th day of May, in the year of Our Lord, nineteen hundred and
seventy-eight.
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